Houses in Multiple Occupation (HMO) – The Housing Act 2004 defines a House in Multiple Occupation (HMO) as:
- An entire house or flat which is let to three or more tenants who form two or more households and who share a kitchen, bathroom or toilet; or
- A house which has been converted entirely into bedsits or other non-self-contained accommodation and which is let to 3 or more tenants who form two or more households and who share kitchen, bathroom or toilet facilities; or
- A converted house which contains one or more flats which are not wholly self contained (ie the flat does not contain within it a kitchen, bathroom and toilet) and which is occupied by 3 or more tenants who form two or more households; or
- A building which is converted entirely into self-contained flats if the conversion did not meet the standards of the 1991 Building Regulations, and more than one-third of the flats are let on short-term tenancies.
To be an HMO, the property must be used as the tenants’ only or main residence and it should be used solely or mainly to house tenants. Properties let to students and migrant workers will be treated as their only or main residence.
if the property is occupied by 5 or more tenants forming 2 or more households covering 3 or more storeys of the property (this includes 2 storey properties with an attic conversion, for example), and households share a facility such as a kitchen or bathroom, a licence will be required.
What is the Definition of a Household?
Members of the same family living together including:
- Couples married to each other or living together as husband and wife (or couples in a same-sex relationship)
- Relatives living together, including parents, grandparents, children (and step-children), grandchildren, brothers, sisters, uncles, aunts, nephews, nieces or cousins
- Half-relatives will be treated as full relatives.
- A foster child living with his foster parent is treated as living in the same household as his foster parent.
- Any domestic staff (e.g. au-pair or live-in nanny)are also included in the household if they are living rent-free in accommodation provided by the person for whom they are working.
Therefore three friends sharing together are considered three households. If a couple are sharing with a third unrelated person that would consist of two households. If a family rents a property that is a single household. If that family had an au-pair to look after their children that person would be included in their household.
Properties where only two single, unrelated people live are not HMOs.
Apply for a HMO Licence
The Housing Act 2004 introduced mandatory licensing of certain types of HMOs. Licensing is intended to monitor management and property standards to ensure that landlords and HMO managers are carrying out their legal responsibilities.
If the building is three or more storeys and is occupied by five or more tenants forming at least 2 households, and the households have to share a bathroom, kitchen or toilet, it will require a licence.
The licence cannot be transferred to another person or property, so if the owner sells the property, the new owner must apply for a licence if they continue to operate the building as an HMO.
HMO Licence fees
Your application must be accompanied by the correct HMO licence fee (fees from 1st April 2016):
- HMO up to 6 habitable rooms – £501
- HMO up to 8 habitable rooms – £519
- HMO up to 10 habitable rooms – £542
- HMO 11 or more habitable rooms – £560
Habitable rooms are bedrooms and living spaces, but exclude kitchens, bathrooms / WCs, under stairs cupboards, pantries, halls and landings.